[Federal Register Volume 59, Number 27 (Wednesday, February 9, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-2961]


  Federal Register / Vol. 59, No. 27 / Wednesday, February 9, 1994 /
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[[Page Unknown]]

[Federal Register: February 9, 1994]


                                                    VOL. 59, NO. 27

                                        Wednesday, February 9, 1994
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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 58

[DA-93-24]
RIN 0581-ABO4

 

Grading and Inspection, General Specifications for Approved 
Plants and Standards for Grades of Dairy Products: Revision of User 
Fees

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

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SUMMARY: The Agricultural Marketing Service is increasing the fees 
charged for services provided under the dairy grading program. This 
rule will yield an estimated $308,000 of additional user fee revenue in 
FY 1994. The program is a voluntary, user-fee funded program conducted 
under the authority of the Agricultural Marketing Act of 1946, as 
amended.

EFFECTIVE DATE: February 9, 1994.

FOR FURTHER INFORMATION CONTACT: Lynn G. Boerger, USDA/AMS/Dairy 
Division, Dairy Grading Branch, room 2750-South Building, P.O. Box 
96456, Washington, DC 20090-6456, (202) 720-9381.

SUPPLEMENTARY INFORMATION: The Department is issuing this final rule in 
conformance with Executive Order 12866.
    This final rule has been reviewed in accordance with the Regulatory 
Flexibility Act, 5 U.S.C. 601 et seq., and the Administrator, 
Agricultural Marketing Service, has determined that it will not have a 
significant economic impact on a substantial number of small entities. 
The changes will not significantly affect the cost per unit for grading 
and inspection services. The Agricultural Marketing Service estimates 
that this rule will yield an additional $308,000 in user fee revenue 
during FY 1994. The Agency does not believe the increases will affect 
competition. Furthermore, the dairy grading program is a voluntary 
program.
    In addition, this final rule has been reviewed under Executive 
Order 12778, Civil Justice Reform. This rule is not intended to have 
preemptive effect with respect to any State or local laws, regulations, 
or policies. This rule is not intended to have retroactive effect. 
There are no administrative procedures which must be exhausted prior to 
any judicial challenges to this rule or the application of its 
provisions.
    The Agricultural Marketing Act of 1946, as amended, authorizes the 
Secretary of Agriculture to provide Federal dairy grading and 
inspection services that facilitate marketing and help consumers obtain 
the quality of dairy products they desire. The Act provides that 
reasonable fees be collected from the users of the services to cover 
the cost of maintaining the program.
    Since the costs of the grading program are covered by user fees, it 
is essential that fees be increased to cover the cost of maintaining a 
financially self-supporting program. The last fee increase under this 
program became effective on January 26, 1992. Since that time, Congress 
increased the salaries of Federal employees by 3.7 percent as of 
January 10, 1993. Also, there have been normal increases in other 
operating costs. In addition, recent congressional action will result 
in additional salary increases of varying amounts in 1994. Although the 
program's operating reserves were adequate to cover the January 10, 
1993, salary increase, this will not be the case for 1994 salary 
increases, and a fee increase is needed.
    The grading program fees also need to be increased to cover the 
costs related to the development of dairy product standards and other 
activities now performed by the Dairy Division's Standardization 
Branch. In the recent FY 1994 appropriations bill, Congress 
appropriated money for the development of standards by the Agricultural 
Marketing Service but at the same time stipulated that the program 
costs be recovered through user fees, with the fees being turned over 
to the U. S. Treasury. Since the dairy standardization program is an 
essential part of the dairy grading program, it is appropriate that the 
standardization program costs be recovered through the fees charged the 
users of the grading program.
    The projected cost of the dairy standardization program for FY 1994 
is $435,000. To lessen the initial impact of transferring this cost to 
the users of the grading program, only about 2/3 of this cost would be 
recovered, with the remainder being covered by the grading program's 
operating reserves. Further fee increases about a year later presumably 
would be needed to cover the remaining portion of the standards costs.
    On October 26, 1993, the Agricultural Marketing Service published 
in the Federal Register (58 FR 57567) for public comment a document 
proposing a $2.60 increase in the hourly fees for both the resident and 
nonresident programs, except for a $3.00 increase for nonresident 
services between the hours of 6 p.m. and 6 a.m. The only comments 
received were from the States of Oklahoma and Idaho, which opposed the 
fee increases. State officials stated that the inspection and grading 
program is being run in an inefficient manner and that steps should be 
taken to reduce program costs.
    Program officials are continually seeking ways to operate the 
program more efficiently and to reduce operating costs. Examples of 
actions taken in recent years include the closing of 3 of 4 field 
offices and a reduction in headquarters staff. Also, program officials 
are currently working with the various States to address their concerns 
regarding program costs. At the same time, it is essential that the 
fees be increased now to cover current operating costs.
    Pursuant to 5 U.S.C. 553, it is hereby found that good cause exists 
for not delaying the effective date of this action until 30 days after 
publication of this final rule in the Federal Register. A revenue 
shortfall warrants putting the higher rates into effect as quickly as 
possible. The increase in fees is essential for effective management 
and operation of the program and to satisfy the intent of the 
Agricultural Marketing Act of 1946. A proposed rule setting forth 
proposed fee increases was published in the Federal Register on October 
26, 1993 (58 FR 57567). Therefore, the provisions of this final rule 
are known to interested parties. Accordingly, the program fees are 
being increased as set forth below.

Program Changes Adopted in the Final Rule

    This document makes the following changes in the regulations 
implementing the dairy inspection and grading program:
    1. Increases the hourly fee for nonresident services from $44.60 to 
$47.20 for services performed between 6 a.m. and 6 p.m. and from $49.00 
to $52.00 for services performed between 6 p.m. and 6 a.m.
    The nonresident hourly rate is charged to users who request an 
inspector or grader for particular dates and amounts of time to perform 
specific grading and inspection activities. These users of nonresident 
services are charged for the amount of time required to perform the 
task and undertake related travel, plus travel costs.
    2. Increases the hourly fee for continuous resident services from 
$39.60 to $42.20.
    The resident hourly rate is charged to those who are using grading 
and inspection services performed by an inspector or grader assigned to 
a plant on a continuous, year-round, resident basis.

List of Subjects in 7 CFR Part 58

    Diary products, Food grades and standards, Food Labeling, Reporting 
and recordkeeping requirements.

    For the reasons set forth in the preamble, 7 CFR part 58 is amended 
as follows:

PART 58--[AMENDED]

Subpart A--Regulations Governing the Inspection and Grading 
Services of Manufactured or Processed Dairy Products

    1. The authority citation for part 58 is revised to read as 
follows:

    Authority: 7 U.S.C. 1621-1627, unless otherwise noted.

    2. Section 58.43 is revised to read as follows:


Sec. 58.43  Fees for inspection, grading, and sampling.

    Except as otherwise provided in Sec. 58.43 and Secs. 58.38 through 
58.46, charges shall be made for inspection, grading, and sampling 
service at the hourly rate of $47.20 for service performed between 6 
a.m. and 6 p.m., and $52.00 for service performed between 6 p.m. and 6 
a.m., for the time required to perform the service calculated to the 
nearest 15-minute period, including the time required for preparation 
of certificates and reports and the travel time of the inspector and 
grader in connection with the performance of the service. A minimum 
charge of one-half hour shall be made for service pursuant to each 
request or certificate issued.
    3. Section 58.45 is revised to read as follows:


Sec. 58.45  Fees for continuous resident service.

    Irrespective of the fees and charges provided in Secs. 58.39 and 
58.43, charges for the inspector(s) and grader(s) assigned to a 
continuous resident program shall be made at the rate of $42.20 per 
hour for services performed during the assigned tour of duty. Charges 
for service performed in excess of the assigned tour of duty shall be 
made at a rate of 1\1/2\ times the rate stated in this section.

    Dated: February 2, 1994.
Lon Hatamiya,
Administrator.
[FR Doc. 94-2961 Filed 2-8-94; 8:45 am]
BILLING CODE 3410-02-P